"Intellectual capital and bank performance: key issues related to the intellectual capital disclosure"

The purpose of this study is to examine a number of key issues related to intellectual capital (IC) disclosure in the European banking sector from 2008 to 2009 by addressing some of the strengths and weaknesses in our prior research, which was conducted from 2003-2007. First the study will provide a succinct but complete description of the current status of theory and practice in the valuation of intellectual (intangible) capital, as well as in the investigation of new approaches to the valuation of knowledge-based business at a micro level (single country area of analysis) and, where possible, at a macro level (macro-regional areas of analysis). Second, using data for the period 2008-2009, it will provide an updated view of the present state of IC in the European banking sector, engaging comparisons with findings from the previous analysis. The analysis will begin by examining the definitions of IC and IC disclosure models present in recent literature. Methodological issues will be discussed in relation to the use of source documents, frameworks, and research methods. Critical theoretical perspectives used to provide the theoretical reinforcement of IC disclosure analysis also will be reviewed. The models used for quantitative investigations will be the Value Added Intellectual Coefficient (VAIC) and its extended version (E-VAIC). Practical findings from the empirical analysis will investigate the association between the efficiency of VA by a firm's major resource bases and profitability and market valuation. Overall, the empirical findings will demonstrate that human capital remains one of the most significant underlying resources for corporate performance in the banking sector. The study offers an international comparative perspective for researchers in academia, and it further establishes a new way of measuring IC. Empirical suggestions will be provided for future work, and the importance of addressing these issues for the sake of improving the credibility of IC disclosure will be stressed.It is an original body of research based on public data pertaining to listed banks and using a very simple, but explicative method.